The Presidio Parkway Project in San Francisco, the first project in California to reach the award stage under the state’s new P3 legislation, will proceed after an Alameda County Superior Court judge struck down a lawsuit led by the Professional Engineers in California Government (PECG), the union that represents Caltrans engineers.

PECG had argued that the project did not meet the criteria set forth in the 2009 P3 legislation, asserting that tolls were the exclusive financing mechanism under the legislation and that the availability payments set out in the deal could not be used.

The same judge, Wynne Carvill, dissolved a temporary restraining order and denied a preliminary injunction at the end of 2010 sought by the California Department of Transportation (Caltrans) and the San Francisco County Transportation Authority (SFCTA) to halt the project. Caltrans and SFCTA had signed a contract